They just banned short selling in US

[timscott]

So crazy.

Shorts didn't kill LEH, LEH killed LEH. They were so levered up in a bubble market WTF were they thinking. The company was insolvent.

Shorts didn't kill the market - greed did - all these financials were so overstuffed, and banks giving out money like nothing.

Come on - Housing went up like 300% in 6 years where I live. Normally if a house went up like 10% in 6 years the owner would be happy.

Pure unbridled greed caused this - not shorts.

They blaming the wrong people.

For the record - I trade 80% long and 20% short

I've honestly been surprised this market hasn't been sub 10k on the dow - the shorts are the only thing that propped this thing up. Once they are all squeezed out this could get real ugly.

 

[hayman]

Aside from the ludicrous nature of tampering with a "free" market, how on earth will the SEC expect all the brokerage houses to conform to the "no short selling rules", given the complex instruments and derivates that are out there, and given that technology changes will need to be implemented for all online trading systems ? Has this all been thought through ??? I sincerely doubt it..........

 

[Bootsie]

Quote from nitro:

Well, I am not 100 delta on my beliefs. But if this doesn't smell as a tradeable bottom, my gawd man, what does?

nitro

what are the limitations w.r.t. the new short selling rule. I know naked shorting is a no-no, but are they talking banning short selling market wide or just in the financials....
thx

 

[regal_2012]

Quote from NQscalper:

this will most liklely get me flamed but I would rather see them just shut the whole market down for 2 weeks then this insanity of banning such a vital market function as short selling.
I know I'm not touching my trading account until this gets sorted out.

believe it or not,they were thinking about shutting the Market down earlier this week.

they wanted to have a cooling off period, similar to what happened after 911

but they got pressure from the bankers, which is actually the FED, so Cox and them had no choice.Thats why it came to this.

 

[athlonmank8]

There's going to be so much red tape to get this through.......

I doubt it will ever happen. The open interest in the options market is a perfect example.....

I just find it INSANE to even consider this.

 

[jficquette]

Quote from mskl:

I wonder how they will stop short positions that are derived from short calls/long puts?

that is: there is a huge open interest in the options market - as they are assigned - traders will get short positions.

I wonder if you can buy puts and then exercise??

I wonder if you can short SSF - becoming short on expiration

I wonder if you can sell calls - becoming short if they are assigned


They may completely destroy the options market....

That is why it won't happen. Options markets run the show and the $500 Trillion in Derivatives market would implode. This is what the gov has been trying to prevent the whole time.



John

 

[startraitor]

The mentality of the herd be it long or short is overwhelming. Watch the discover channel sometime. You will see stories of herd animals running through the most hunted grounds for thousands of years. Seeing their kin and likeness get brutally savaged time and again. There are alternative routes, but the herd follows, and the hunter awaits. It is an overwhelming urge on the part of the herd and the hunter.

 

[lindq]

Quote from jficquette:

That is why it won't happen. Options markets run the show and the $500 Trillion in Derivatives market would implode. This is what the gov has been trying to prevent the whole time.

Yes, but don't forget the idiocy of politicians, especially in an election year.

And don't forget that Cox works for the President.

(Yes, we have a President. If you've forgotten, I can understand.)

You can imagine the conversations on the hill right at this moment.

"Yea, it's those damn short sellers that are to blame. That's it. Let's ban short sellers and everything will be okay. And let's do it quickly so we can get on vacation!"

Stupid asses.

If they put this ban into effect, you can toss out every system you've developed for trading equities or futures.

Gone. Out the window.

 

[jficquette]

Quote from lindq:

Yes, but don't forget the idiocy of politicians, especially in an election year.

And don't forget that Cox works for the President.

You can imagine the conversations on the hill right at this moment.

"Yea, it's those damn short sellers that are to blame. That's it. Let's ban short sellers and everything will be okay."

Stupid asses.

If they put this ban into effect, you can toss out every system you've developed for trading equities or futures.

Gone. Out the window.

Only morons like Hillary Clinton, Harry "we don't know what to do" Reid, Schumer, Peloski et. al. are stupid enough to openly discuss like its a viable course of action


Irony is part the $100k that HC made on Cattle futures were from selling the Cattle short lol.


John

 

[newguy05]

Quote from timscott:
Shorts didn't kill LEH, LEH killed LEH.

i am definitly against short ban, but this is utter bullshit. Lehman had a bad balance sheet yes and fuld didnt act aggressively, but it is the shortsellers that killed it without any doubt. If its stock remained at $14 the company would be fine, the shortsellers took it down to $3 in a few days. Which caused the confidence to collapse and with little time to react, its ultimate demise.

If the governments didnt do anything today, morgan stanley would be down 40%, and tomorrow another 40% and it would be done as well. They will then move onto goldman. There is NO FIRM that can withstand these kind of pressure to their stock and survive.